On October 4, the U.S. Department of Justice (DOJ) filed a motion in court, asserting that the absence of cryptocurrency regulation in the United States doesn't exempt former FTX CEO Sam "SBF" Bankman-Fried from criminal charges.
This DOJ response came in reply to a request by the defendants, who sought clarification and reconsideration of charges related to the alleged misuse of FTX funds. SBF's legal team had argued that their client was innocent because FTX is not regulated in the United States, and he had adhered to the rules governing FTX US.
The DOJ countered this argument, deeming it irrelevant. It stated that while the presence of specific legislation might be necessary to establish a legal duty, its absence does not affect whether a defendant can face charges for allegedly swindling money from victims. The DOJ explained that the defendants' claim about the lack of regulations regarding the handling of client funds was false because the existing rules still applied. It further contended that existing laws prevent companies from embezzling customer assets, which is the basis for the charges against the defendants. Additionally, it argued that the defendants had deceived customers and stolen their money.
According to the DOJ, it doesn't matter whether the defendants made misleading statements or omissions in the absence of explicitly applicable laws or regulations. In other words, the lack of regulation doesn't absolve someone from wire fraud charges if they are accused of committing deceitful acts.
SBF is currently facing multiple charges, including wire fraud and misappropriation of client funds. He is currently in jail for violating bail conditions and attempting to influence potential witnesses. Despite several bail requests before the trial started, he has not been granted bail. SBF's legal team has claimed that the lack of internet access hindered his defense preparation, and there were no vegetarian meal options.
The trial for SBF commenced on October 3, with expectations that it could extend for up to six weeks.
